Category: Daily Call

Bears Find Some Love ??

Daily Continuation

Declines extended lower after the storage release and closed at the lows. Am I selling — no way as the market is still oversold from a technical standpoint. Am I buying at these lows — not the prompt any length will be in the summer differed contracts. Have not trusted the selling from the funds and the “spreading” action in the CFTC data — so not to choose that group of “individuals” I remain longer term and minimizing exposure.

Major Support: $2.422, $2.238
Minor Support:
Major Resistance$2.67, $3.536, 3.595, $3.63, $3.789, $4.128, $4.22-$4.39, $4.75-$4.825, $4.948

Waiting For Love

Daily Continuation

Over the last 10 trading days the market has traded in a $.35 range and have little or no interesting in breaking out or down. Where is the love (especially considering the time of the month). What are we going to do here? Discussed in the late Weekly diatribe that the market seems to be “basing” — built into that term is the concept that from this period prices rally. The other term to use is consolidation for this trade — not insinuating the upcoming move is up or down. I believe that price are consolidating but could be basing if the shorts don’t develop the power to extend.

Major Support: $2.533, $2.422, $2.238
Minor Support:
Major Resistance$2.67, $3.536, 3.595, $3.63, $3.789, $4.128, $4.22-$4.39, $4.75-$4.825, $4.948

To read The Daily Call you must be a subscriber (Current members sign in here. ) Start your subscription today.

The Daily Is Back

Daily Continuation

Thanks for all the kind wishes over the last couple of days– gas, really, did nothing to catch my attention from bed. Still in the range from last week — but the market does seem to be “basing” here (see the Weekly Update) for some additional tests of resistance. It was informative that the declines on Monday were reversed on Tuesday and the selling ran out of follow through. Seems to be developing a new range near term– for the longer range thoughts bring up today’s Weekly.

Major Support: $2.533, $2.422, $2.238
Minor Support:
Major Resistance$3.536, 3.595, $3.63, $3.789, $4.128, $4.22-$4.39, $4.75-$4.825, $4.948

To read The Daily Call you must be a subscriber (Current members sign in here. ) Start your subscription today.

It Is a Start

Daily Continuous

My apologies for no Daily yesterday — illness limited my computer time. The trade on Monday and yesterday (more so yesterday) did take on some of the characteristics of short covering— but will have to wait until open interest and volume are final. Explaining “some” is about the volume with the open interest at key levels of resistance and/or support– which yesterday broke through the $2.50 area finally (resistance) and closed above that level. That does not suggest the market is off to the rallies — rather just an adjustment in the trader’s eyes. We will know when the short covering rally has commenced when there is a strong volume day and open interest declines.

Major Support: $2.533, $2.422, $2.238
Minor Support:
Major Resistance$3.536, 3.595, $3.63, $3.789, $4.128, $4.22-$4.39, $4.75-$4.825, $4.948

Was Wrong on the Volume

Daily Continuous

Tuesday was a higher volume day and was matched yesterday, Now lets look at the storage release and the reaction to it. Would be a buyer on support tests, going into the football weekend,

Major Support: $2.533, $2.422, $2.238
Minor Support:
Major Resistance$3.536, 3.595, $3.63, $3.789, $4.128, $4.22-$4.39, $4.75-$4.825, $4.948

To read The Daily Call you must be a subscriber (Current members sign in here. ) Start your subscription today.

Over-sold Reaching History

Daily Continuous

Discuss some of the historic aspects of the declines since last fall in the Weekly section. Not going into here as well– just here to say — not sure from where but there will be a short covering rally coming up that will challenge the over-bought correction experiences from last summer and last fall. Careful through here.

Major Support: $2.533, $2.422, $2.238
Minor Support:
Major Resistance$3.536, 3.595, $3.63, $3.789, $4.128, $4.22-$4.39, $4.75-$4.825, $4.948

Headed to $1.00

Daily Continuous

Well– the RSI (weekly) jumped to the lowest level in the last decade– but some traders are irrelevant of that fact and are confirming to some that prices are headed under $2.00 — yee haw. Must admit that this level of bearishness is not to be taken lightly nor relevant to future prices — as the market is setting itself up for a significant short covering episode.

Major Support: $2.533, $2.422, $2.238
Minor Support:
Major Resistance$3.536, 3.595, $3.63, $3.789, $4.128, $4.22-$4.39, $4.75-$4.825, $4.948

To read The Daily Call you must be a subscriber (Current members sign in here. ) Start your subscription today.

Don’t Listen To Technical Issues — Keep Selling

Daily Continuous

That is the mantra for the speculators currently– Over-sold ??? Who cares keep selling. Have to admit one element that has been accurate three of the last four weeks is anticipating bearish storage reports beget more selling which has proven profitable on a day basis. Its been the theme for the month of January and Feb started off singing the same tune. These little tendencies are good for a quick position but would never hold over night due to the general over sold bias discussed of late. Did a look into the nature of who (segment) is selling since the Nov highs and hope to share with you over the weekend.

Major Support: 2.68, $2.533, $2.422, $2.238
Minor Support:
Major Resistance$3.536, 3.595, $3.63, $3.789, $4.128, $4.22-$4.39, $4.75-$4.825, $4.948

To read The Daily Call you must be a subscriber (Current members sign in here. ) Start your subscription today.

A Quiet Day

Daily Continuation

What a quiet day for natural gas yesterday, guess the bears ran into some issues is sending prices down further. Not much to say about the technical side from yesterday.

Major Support: $2.761, 2.68, $2.533, $2.422, $2.238
Minor Support:
Major Resistance$3.536, 3.595, $3.63, $3.789, $4.128, $4.22-$4.39, $4.75-$4.825, $4.948